National Culture, Networks, And Individual Influence in a Multinational Management Team
Culture and role multinational operation
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Transcript of Culture and role multinational operation
IBM 640INTERNATIONAL MANAGEMENT
CHAPTER 3 :CULTURE AND ITS
ROLE IN MULTINATIONAL OPERATIONS
Prepared for: MADAM NURUL AZRIN ARIFFIN
Presenter : AHMAD AFIDZ BIN MOHLISIN
MASWADI BIN AZIZMUHAMAD SHAHRULFITRI BIN
MOHD SULAIMANMUHAMMAD RIDZUAN BIN MOHAMED ESA
DEFINITIONS OF CULTURE
Culture
• Acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior.
THE NATURE OF CULTURE
Nature Of Culture
• Learned • Shared • Trans-generational • Symbolic• Patterned• Adaptive
Hofstede’s Cultural Dimensions
1. Power distance
2. Uncertainty avoidance
3. Individualism vs collectivism
4. Masculinity vs femininity
Power Distance
• Less powerful members accept that power is distributed unequally– High power distance countries: people blindly
obey superiors; centralized, tall structures
– Low power distance countries: flatter, decentralized structures, smaller ratio of supervisor to employee
Country Power Distance Index
Malaysia 104
Guatemala 95Panama 95
Philippines 94
Mexico 81
Venezuela 81
China 80Egypt 80Iraq 80
Kuwait 80
High Power Distance Countries
Ireland 28New Zealand 22Denmark 18Israel 13Austria 11
Country Power Distance Index
Low Power Distance Countries
Hofstede’s Cultural Dimensions
• Uncertainty avoidance: The degree of tolerance for uncertainty, ambiguity and strict laws.
• create beliefs/institutions to avoid these situations
– High uncertainty avoidance countries: high need for security, less managerial risk taking, structure organizational activities
– Low uncertainty avoidance countries: people more willing to accept risks of the unknown, more managerial risk taking, less structured organizational activities, more ambitious employees
Country Uncertainty Avoidance Index
Greece 112
Portugal 104
Guatemala 101
Uruguay 100
Belgium 94
High Uncertainty Avoidance Countries
Malaysia 36
Ireland 35
United Kingdom 35
Hong Kong 29
Sweden 29
Denmark 23
Jamaica 13
Singapore 8
Country Uncertainty Avoidance Index
Low Uncertainty Avoidance Countries
Hofstede’s Cultural Dimensions
• Individualism: People look after selves and immediate family only– High individualism countries: wealthier,
protestant work ethic, greater individual initiative, promotions based on market value (e.g. U.S., Canada, Sweden)
– High collectivism countries: poorer, less support of Protestant work ethic, less individual initiative, promotions based on seniority (e.g. Indonesia, Pakistan)
Hofstede’s Cultural Dimensions
• Masculinity: dominant social values are success, money, and things– High masculine countries: stress earnings, recognition,
advancement, challenge, wealth; high job stress (e.g., Germanic countries)
– High feminine countries: emphasize caring for others and quality of life; cooperation, friendly atmosphere., employment security, group decision making; low job stress (e.g., Norway)
Trompenaars’ Cultural Dimensions
• Universalism vs. Particularism– Universalism: ideas/practices can be applied
everywhere– High universalism countries: formal rules, close
adhere to business contracts (e.g., Canada, U.S., Netherlands, Hong Kong)
– Particularism: circumstances dictate how ideas/practices apply; high particularism countries often modify contracts (e.g., China, South Korea)
• Individualism vs. Communitarianism– Individualism: people as individuals– Countries with high individualism: stress personal and
individual matters; assume great personal responsibility (e.g., Canada, Thailand, U.S., Japan)
– Communitarianism: people regard selves as part of group– Value group-related issues; committee decisions; joint
responsibility (e.g., Malaysia, Korea)
• Neutral vs. EmotionalNeutral: culture in which emotions not shown• High neutral countries, people act stoically and maintain
composure (e.g., Japan and U.K.)
Emotional: Emotions are expressed openly and naturally• High emotion cultures: people smile a lot, talk loudly, greet each
other with enthusiasm (e.g., Mexico, Netherlands, Switzerland)
• Specific vs. Diffuse– Specific: large public space shared with others and small
private space guarded closely• High specific cultures: people open, extroverted; strong
separation work and personal life (e.g., Austria, U.K., U.S.)
– Diffuse: public and private spaces similar size, public space guarded because shared with private space; people indirect and introverted, work/private life closely linked (e.g., Venezuela, China, Spain)
• Achievement vs. Ascription– Achievement culture: status based on how well
perform functions (Austria, Switzerland, U.S.)– Ascription culture: status based on who or what
person is (e.g., Venezuela, China, Indonesia)
• Time– Sequential: only one activity at a time; appointments kept
strictly, follow plans as laid out (U.S.)– Synchronous: multi-task, appointments are approximate,
schedules subordinate to relationships (e.g., France, Mexico)
– Present vs. Future:• Future more important (Italy, U.S., Germany)• Present more important (Venezuela, Indonesia• All 3 time periods equally important (France, Belgium
• The Environment– Inner-directed: people believe in control of
outcomes (U.S., Switzerland, Greece, Japan)– Outer-directed: people believe in letting things
take own course (China, many other Asian countries)
Values in Culture
• Values– Learned from culture in which individual is reared– Differences in cultural values may result in varying
management practices– Basic convictions that people have about• Right and wrong• Good and bad• Important and unimportant
Priorities of Cultural Values
How Culture Affects Managerial Approaches
• Centralized vs. Decentralized Decision Making:– In some societies, top managers make all
important organizational decisions. – In others, these decisions are diffused throughout
the enterprise, and middle- and lower-level managers actively participate in, and make, key decisions.
How Culture AffectsManagerial Approaches
• Safety vs. Risk:– In some societies, organizational decision makers
are risk averse and have great difficulty with conditions of uncertainty.
– In others, risk taking is encouraged, and decision making under uncertainty is common.
How Culture AffectsManagerial Approaches
• Individual vs. Group Rewards:– In some countries, personnel who do outstanding
work are given individual rewards in the form of bonuses and commissions.
– In others, cultural norms require group rewards, and individual rewards are frowned upon.
How Culture AffectsManagerial Approaches
• Informal Procedures vs. Formal Procedures:– In some societies, much is accomplished through
informal means.– In others, formal procedures are set forth and
followed rigidly.
How Culture AffectsManagerial Approaches
• High Organizational Loyalty vs. Low Organizational Loyalty– In some societies, people identify very strongly
with their organization or employer. – In others, people identify with their occupational
group, such as engineer or mechanic.
How Culture AffectsManagerial Approaches
• Cooperation vs. Competition– Some societies encourage cooperation between
their people.– Others encourage competition between their
people.
How Culture AffectsManagerial Approaches
• Short-term vs. Long-term Horizons– Some culture focus most heavily on short-term
horizons, such as short-range goals of profit and efficiency.
– Others are more interested in long-range goals, such as market share and technologic developments.
How Culture AffectsManagerial Approaches
• Stability vs. Innovation– The culture of some countries encourages stability
and resistance to change.– The culture of others puts high value on
innovation and change.
Value Similarities and Differences Across Cultures
1. Strong relationship between level of managerial success and personal values
2. Value patterns predict managerial success and can be used in selection/placement decisions
3. Country differences in relationship between values and success; however, findings across U.S., Japan, Australia, India are similar
4. Values of more successful managers favor pragmatic, dynamic, achievement-oriented and active role in interaction with others
5. Values of less successful managers tend toward static and passive values; relatively passive roles in interacting with others
Integrating Culture and Management: The GLOBE Project
• GLOBE: Global Leadership and Organizational Behavior Effectiveness.
• Project extends and integrates previous analyses of cultural attributes and variables.
• Covered every major geographic region of the world.
The GLOBE Project
• The 9 Dimensions of the GLOBE Project:– Uncertainty avoidance– Power distance– Collectivism I: Social collectivism– Collectivism II: In-group collectivism– Gender egalitarianism– Assertiveness– Future orientation– Performance orientation– Humane orientation
GLOBE Project
THANK YOU Q & A